ECB May Raise Growth Forecasts Again in December – Lagarde

The European Central Bank could revise its growth outlook upwards once more in December, according to ECB President Christine Lagarde. Speaking at a Financial Times event, Lagarde pointed to the eurozone economy’s continued resilience, despite global uncertainty and ongoing trade tensions.

Forecast

“In the last projection exercises, we have upgraded our projections,” Lagarde said. “My suspicion is that we might do that again in December.”

Her comments suggest that the ECB sees more strength in the European economy than previously expected. This would mark yet another upward revision after recent upgrades in earlier projections.

Stability

Lagarde also reiterated that eurozone monetary policy is currently in a “good place,” a phrase she’s used frequently in recent months. The statement was taken by markets as a clear signal that the ECB is not planning to change interest rates in the short term.

For investors, that means no immediate rate hikes or cuts are on the horizon, at least based on the current economic data.

Context

Lagarde’s optimism comes at a time when many economies are still dealing with global supply chain issues, geopolitical uncertainty, and the lingering effects of inflation.

Despite this, the eurozone has shown signs of stability. Recent data has indicated steady, if modest, economic growth and declining inflation, giving the central bank room to maintain its current policy stance.

Outlook

With the ECB’s next round of economic forecasts due in December, markets will be watching closely for further signs of upward revisions in growth. If Lagarde’s hunch proves correct, it would signal improving confidence in the eurozone’s economic recovery heading into 2026.

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